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08-05-09 Public Works finds new efficiencies, revenue streams
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08-05-09 Public Works finds new efficiencies, revenue streams
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8/6/2009 8:12:10 AM
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Pg. 2 <br /> <br />The street department recently participated with other units of government in a cooperative <br />purchase of road salt with the State of Indiana, buying a large quantity of salt at $54.67 per ton, <br />compared with market prices reaching $150 per ton. In addition, South Bend crews installed <br />liquid salt brine-making equipment to dramatically increase its effectiveness. Where 1 ton of <br />rock salt covers 4 miles of street, that same amount of salt, when converted to brine, <br />accomplishes the same results for 19 miles of streets – a nearly fivefold increase. The savings is <br />further compounded in the means of application – salt brine is applied proactively ahead of <br />storms during “straight-time pay” periods. Road salt is applied on overtime pay during storms. <br /> <br />The department also is turning to technology to improve efficiency and reduce costs in large and <br />small ways. The City is in the second year of a 10-year contract during which it expects to save <br />nearly $2 million from converting incandescent traffic signals to low-energy LEDs. But <br />sometimes improved service is the primary result. The Division of Water Works will reduce <br />telephone costs in its operations by 75 percent through converting 17 leased lines to a radio/fiber <br />optic SCADA system. The Environmental Services division is using a digital sewer camera <br />during routine maintenance to diagnose potential sewer backups for homeowners from root <br />masses invading sewer laterals. Homeowners will receive warning letters when cleaning is <br />needed on the private portion of the lateral. <br /> <br />“This is one of the ways we are instilling a culture of proactive solutions in the City of South <br />Bend to better serve our residents,” said Gary Gilot, director of public works. <br /> <br />The Common Council also reviewed the proposed 2010 budget for the Morris Performing Arts <br />Center and the Palais Royale Ballroom, two revenue-generating facilities for the City of South <br />Bend. The proposed $1,326,222 budget for 2010 represents a 13 percent decrease from 2009. <br /> <br />“The Morris essentially ‘borrows’ operating funds from the City of South Bend and then returns <br />money to the City throughout the year. From events held in the theater, the Morris returns <br />revenue earned from facility rent, equipment rental, box-office services, and commissions earned <br />on food-and-beverage sales and show-merchandise sales,” said Dennis J. Andres, executive <br />director. “The Palais Royale returns revenue earned from facility rent, equipment rental, and <br />commissions earned on food-and-beverage sales.” <br /> <br />Cost savings came from cuts in two personnel – a receptionist and sales/event associate – a 5 <br />percent salary reduction for Andres, an end to the City’s payment of a health-care flex benefit <br />and through contracts that were renegotiated or eliminated. <br /> <br />A 2007 study showed that the landmark facilities have a $5.9-million indirect economic impact <br />on downtown South Bend through activities such as dining, lodging, transportation, souvenirs <br />and other expenditures. <br /> <br />In addition, the Morris and Palais generate revenue from parking fees while contributing to <br />bookings of nearly 1,500 hotel rooms, from which Hotel-Motel tax receipts support Century <br />Center and the College Football Hall of Fame. Other events organized by Morris staff, like the <br />Fridays by the Fountain concert series, are funded through sponsorships at no cost to taxpayers. <br /> <br />Budget hearings will resume at 3:30 p.m. Wednesday with proposed 2010 budgets for Building, <br />Mayor’s Office, self-insurance funds, capital and debt funds, Century Center, Clerk and the <br />Common Council. <br />- 30 - <br />
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